In the last years, several Bitcoins and other virtual currencies have been stolen by thieves and hackers. However, it is possible to safely store virtual currencies and avoid being targeted by attacks.
According to a recent report, 4 million Bitcoin have been lost because users did not properly store them. But there are some tips that would allow you to properly store your funds.
The first thing to take into account is to know where we store the funds. Using online web wallets are not the best place to leave our cryptocurrencies. Online wallets use a private key access that must be stored on an offline document such as a paper. But it can be lost or even stolen.
But online wallets are very risky since hackers are able to access the funds in a very easy way. In order to avoid problems, the best is to store the cryptocurrencies in an offline wallet such as Trezor or Ledger.
Online wallets should only have small sums of funds and be used to purchase goods or trade virtual currencies. Once the operation is processed, the funds should be stored in cold wallets.
Another issue is related to losing the keys. Users tend to forget where they store their private keys, something that could be very harmful in case the investor wants to recover its funds. If a crypto investor wants to prove that he is the real owner of these funds, he should always have a private key.
If the user loses the private key, there is no way to recover it, since there is no system that allows for it. Users should store their private keys in a place where they will remember that they have it in case it is needed.
Furthermore, another mistake that investors make is to use an application or computer that has a slow, unreliable or insecure internet connection. If the application is shut down, the data stored there can be lost, or if the network is not safe, there can be hackers ready to steal users’ funds.
The best solution is to always use cold storage wallets, avoiding problems related to attackers or hackers.